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Centralized and decentralized exchanges are stepping up their game, with the upcoming launch of Uniswap v3, competition in the sector is bound to be fierce. PancakeSwap’s second iteration is also around the corner. CAKE holders will be able to profit.
In a recent vote, PancakeSwap’s community decided to approve a feature called the “Big Burn”. Therefore, after April 23
rd “Great Migration” the exchange will buy back and burn more CAKE “than ever before”. Every trade in PancakeSwap v2 will “contribute” to this mechanism.
The exchange’s daily trading volume sits at around $4 billion. According to the recently approved burn mechanism, this figure will be multiple by 0.05%. As a result, around 2.2 million CAKE could be buyback and burned each day. If PancakeSwap maintains its current daily trading volume, its native token buying pressure could skyrocket for the benefit of investors.